Late-night levy 'more targeted' despite calls to scrap it

Announced last week, the changes​ allow local authorities to create LNL areas smaller than their local authority boundaries and include refreshment premises.

Partner at Poppleston Allen James Anderson​ said: “Against the backdrop of high inflation, extraordinarily high energy costs and continued staff shortages, the timing of the announcement was unfortunate.

“But if you take a macro view of the announcement and push aside the disappointment of the fact that the levy wasn’t scrapped, the Government are clearly trying to create a tool that can be more targeted and less ‘catch-all’.

Financial burden 

“However, if imposed, the extra cost is likely to felt most severely by the late-night independents, which are the sort of businesses town centres and high streets desperately need to encourage.

“Let us hope councils’ previous reluctance to impose the levy will continue.”

Anderson added industry bodies would no doubt “keep the pressure” on Government to remove as much “financial burden” on the industry as possible.

“Of course, with one party looking to retain power and another looking to make pledges to win power, we could see a lot of changes across the next twelve months”, he concluded.

Stealth tax

The new geographically based powers came into effect from Thursday 13 July.

UKHospitality (UKH​) said the changes were “frustrating” and based on “out of date evidence”, while the Campaign for Real Ale (CAMRA​) chair Nik Antona added the revisions were a “step in the right direction” but remained “unfair, controversial and detrimental”.

Night-Time Industries Association (NTIA) CEO Michael Kill said: “With taxation and inflation already drowning the sector, the Government must reconsider its position on late-night levy’s.

“It is just another stealth tax on top of others which is systematically penalising businesses that operate at night, with no clear benefit.”